A new study published by McKinsey suggests that the quality of brand management is eroding around the world. One data point suggest over half (55%) of corporations polled are seeking to improve brand management. The culprits are globalization, staffing inefficiency, the increased use of digital media, matrix organization structures (many, rather than one boss) and the perceived need to put more specialists on brand teams.
In a separate study, the CMO Council published this: 41% of client companies said they were working in a “moribund organizational culture“. So brand management needs to be fixed.
How about the agency side?
The CMO study suggested 35% of brand companies are unhappy with the integration and alignment of the agency networks with which they worked — so, agencies aren’t faring much better organizationally. At the 4A’s Jay Chiat Account Planner Awards this past year, there was some grousing that clients are fed up with having as many as four strategic planners in a meeting when all the agencies are brought together: one from the AOR, one from direct, one from digital, one from promotion. Add to that all the specialty services agencies must now provide and you can see the garden is growing out of control.
It’s for this reason that mid-size shops have a leg up in delivering inline communication programs. (Not offline or online.) Mid-size shops have the ability to share and play together better — and they have better oversight.
It may be counterintuitive but organizational innovation (and efficiency) is most likely to come from mid-size shops (read KBS Partners, Crispin, Straw Frog) than from the big boys and girls. And when that happens, the marketing companies will hopefully follow suit and better integrate. Peace!